tag:blogger.com,1999:blog-6318055043707993918.post7820575177712661216..comments2024-02-20T02:12:18.090-05:00Comments on THE WANDERING TAX PRO: 2012 – THE YEAR IN TAXESRobert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6318055043707993918.post-3446343177558672162012-12-28T11:48:10.579-05:002012-12-28T11:48:10.579-05:00The most bothersome item to this reader is the Alt...The most bothersome item to this reader is the Alternative Minimum Income Tax for tax year 2012 and the AMT exemption patch that has not been passed. Even if Congress would simply use the same one from 2011, millions of families would be spared the dreaded tax. (I'm aware there is a Bill out there with an inflation adjusted new amount for 2012 but I'll be satisfied with just keeping the one from 2011.)<br /><br />Simply put -- the difference between the $45,000 exemption amount (now current law) for MFJ and the $74,450 amount for the tax year 2011 leaves a difference of $29,450 multiplied by 26% (for AMTI income up to $175K) or a maximum additional amount of tax of $7,657 as the effect of not passing a patch at least equal to the one for tax year 2011. Any MFJ family's additional tax would obviously be dependent on the amount of itemized deductions. In my family's case, high New York property taxes plus high New York income taxes would not be allowed and our additional tax bill would be several thousand dollars more if no patch is passed. (Also dependent upon size of income, some families MFJ who take the standard deduction might be affected as well.)<br /><br />I have done my citizen's best by writing and calling my 2 Senators' offices and also Congressional Representative's office numerous times over the past 6 months. On December 26, I called Harry Reid's office to complain as well. I sent an E-mail to the White House also. I left messages stating I blamed both sides as well as President Obama for the mess we are in. Perhaps more of us should pick up the phone, call and let the politicians hear our disgust!!!!!!<br /><br />P.S. --- I have also been sitting at my computer running different scenarios --- pay the property taxes in 2012 (now) or postpone to January 2013 (with no knowledge of what the tax rates will be) but using assorted guestimate rates. <br /><br />Will Congress retroactively patch the AMT in 2013 or 2012? If I as an individual am stymied by Congress' inaction, how will businesses figure out what the best course of action for their companies will be for 2013?Anonymousnoreply@blogger.com